Value Added Tax Act 1994 Schedule 11A paragraph 12

Penalty assessments

Schedule 11A paragraph 12 sets out how HMRC may assess and notify penalties for failure to disclose notifiable VAT avoidance schemes, including time limits, content requirements for penalty notices, and recovery provisions.

• HMRC may assess the penalty amount and notify the person liable, even if the conduct giving rise to the penalty has already ceased
• Where the notional tax cannot readily be attributed to specific accounting periods, HMRC may allocate it to whichever periods they consider most appropriate using their best judgement
• A penalty assessment must be made within two years of HMRC becoming aware of facts sufficient to indicate a failure to comply with the disclosure requirements for a notifiable scheme
• The penalty notice must specify the amount, the reasons, how it was calculated, and any reduction granted, and the penalty is recoverable as if it were VAT due unless the assessment is withdrawn or reduced